Question

Increasing currency ______ is making exchange rates more volatile.
A)intervention
B) speculation
C) laundering

Answer 1

Increasing currency speculation is making exchange rates more volatile.

Answer 2

The correct answer is option (B) speculation.

Lets discuss the options to get a clear picture.

Option (A) intervention

Intervention means the process of intervening or interfering.

This word is not related to the question and hence is eliminated.

Option (B) speculation

Speculation means investing money in stocks or property with the hope of gain, but it has risk of loss.

So, this situation makes the exchange rates volatile and hence is apt for the answer. This is the correct answer.

Option (C) laundering

Laundering means hiding/ concealing the origin of money, which is obtained illegally.

So money laundering results in losses of finances from the economy and the situation becomes poor.  

(Volatile word is used in question, this means can be good or bad)

Hence this option is incorrect.